Morrow Bank ASA: Agreement to acquire Swedish performing loan portfolio, driving growth and profitability

04 Jul 2024 14:30 CEST

Morrow Bank today agreed to acquire a SEK ~700 million portfolio of performing
loans from Qliro AB, in line with its communicated strategy to pursue structural
opportunities to accelerate value creation.

The acquisition is at a premium of 2% compared to the loan value, making it a
cost-effective way for the Bank to grow its loan balance and leverage its
scalable banking platform.

Due to a high degree of automation and self-service across Morrow Bank’s
processes, the loan balance growth will have no impact on the Bank’s cost level.
Preliminary estimates indicate that the transaction will have a neutral impact
on 2024 results and a positive effect from 2025 and onwards, demonstrating the
scalability of the Bank.

The transaction with Qliro AB is expected to close before the end of August 2024
with a settlement in cash. The acquisition will be fully covered by the Bank’s
available liquidity and capital. Following the transaction, Morrow Bank’s
Swedish gross loan book will be around SEK 3.7 billion, accounting for ~28% of
the Bank’s overall loan volume.

Morrow Bank maintains its target of growing its loan balance organically by ~10%
annually towards the end of 2025 and the Bank considers its business plan to be
fully funded.


For further information, please contact:
Eirik Holtedahl, CFO
tel: +47 96912291
email: ir@morrowbank.com

About Morrow Bank ASA
Morrow Bank is a Nordic niche bank offering personal loans, credit cards and
deposit accounts to consumers. The target group is creditworthy individuals with
stable personal finances and no payment remarks. Credit risk is managed largely
by automated processes for credit assessment and underwriting. The Bank has a
diversified and balanced distribution model utilizing both public and
proprietary channels. Operational efficiency and low cost are a foundation for
Morrow Bank and are enabled by centralized operations, modern systems and
digital set-up.

To learn more, visit ir.morrowbank.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock
exchange announcement was published by Henning Fagerbakke, Head of Finance,
Morrow Bank ASA, on 4 July 2024 at 14:30 CEST.

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